Banking and Finance Group 3 - Financial Intermediaries

Choose the best answer that defines financial intermediation.

• A. Channeling funds between suppliers and customers

• B. Channeling funds between buyers and sellers.

• C. Channeling funds between borrowers and savers.

• D. Channeling funds between intermediaries

Choose the best example of a financial intermediary.

• A. Technology firm

• B. Investment firm

• C. Home healthcare business

• D. Computer repair company

Which of the following is commercial banks? 

• 1. Vietnam Bank for Agriculture and Rural Development (Agribank)

• 1. Public Bank Vietnam Limited (PBVN) 

• 1. Bank for Investment and Development of Vietnam (BIDV)

• The Hongkong and Shanghai Banking Corporation (HSBC)

Which of the following is commercial banks? 

• 1. The State Bank of Viet Nam (SVB)

• 1. Public Bank Vietnam Limited (PBVN) 

• 1. Bank for Investment and Development of Vietnam (BIDV)

• The Hongkong and Shanghai Banking Corporation (HSBC)

Which of the following account types are deposit accounts with fixed terms of maturity?

• Checkable deposits

• 1. Saving deposits

• 1. Time deposits 

• 1. Demand deposits

Credit unions primarily use shares for:

• 1. A. Making mortgage loans

• 1. B. Making consumer loans

• 1. C. Buying government securities 

• 1. D. Buying municipal bonds

1. Which of the following is not a Vietnam finance company?

• 1. A. Home Credit Vietnam Finance Company

• 1. Lotte Vietnam Finance Company Limited

• 1. Vietnam Electricity Corporation

• 1. Electricity Joint Stock Finance Company

1. How can finance companies raise funds?

• 1. A. By selling shares to many individuals and use the proceeds to purchase diversified portfolios of stocks or bonds.

• B. By selling commercial paper (a short-term debt instrument) and by issuing stocks and bonds

• 1. C. By selling shares to acquire funds

• D. By taking in deposits and then lend them out.

How do life insurance companies differ from fire and casualty insurance companies in terms of their risk and role?

• A. Life insurance companies have lower possibility of loss of funds and are among the largest contracting savings institutions, while fire and casualty insurance companies have higher possibility of loss and are part of the property and casualty industry.

• B. Life insurance companies have higher possibility of loss of funds and are part of the property and casualty industry, while fire and casualty insurance companies have lower possibility of loss and are among the largest contracting savings institutions.

• C. Life insurance companies and fire and casualty insurance companies have the same possibility of loss of funds and are both among the largest contracting savings institutions.

• D. Life insurance companies and fire and casualty insurance companies have the same possibility of loss of funds and are both part of the property and casualty industry.

1. Which of the following is not one of the features of Money Market Mutual Funds?

• 1. A. Moderate income

• 1. B. Comparatively less risks

• 1. C. Proper for short term investment

• D. Insecure